Explanation: It does not institute a magnificent auction of finance, where captivated provinces come to general ransom by bidding against each other, until you knock down the hammer, and determine a proportion of payments beyond all the powers of algebra to equalize and settle.

Answer: The lines occur in Burke’s “Speech on Conciliation with America”, an unforgettable piece in the tradition of British parliamentary speeches. In the introductory part of his speech Burke tells about his idea of ‘simple peace’ which he is seeking to establish in the colonies. Burke here criticizes the ‘refined’ policy of Lord North whose bill proposes to make a great auction of the financial freedom of the colonies.

Lord North’s bill proposes that each colony will offer a sum of money as revenue; and if it is accepted by the Parliament, it will be exempted from direct taxation by England. In the quoted lines Burke calls this policy an ‘auction of finance’. He labels it ‘magnificent’ because it will turn the Parliament into an auctioneer. In an ordinary auction, several parties compete with each other to buy goods and the acceptance of the price is declared by the fall of a hammer. Similarly, if Lord North’s bill is accepted the colonies will be the buyers to purchase the financial freedom from the Parliament, the auctioneer. As there is no price fixed for financial freedom the Parliament may seek an amount that might go beyond the actual paying capacity of the colonies. Burke is here satirizing Lord North’s plan and his comparisons are apt.